Maybulk to Sell its Stake in POSH
Malaysian Bulk Carriers Bhd (Maybulk) plans to sell its entire 21.23% stake in Singapore-listed PACC Offshore Services Holdings Ltd (POSH) to its own shareholders, reported The Star.
According to the report, Maybulk seeks to raise cash to pay for new vessels and cut down its debts. It also seeks to raise funds to strengthen its future operations in the dry bulk sector.
Maybulk said the proposed disposal will enable the group to focus on its core business activity in the dry bulk sector.
POSH is involved in offshore marine support services. Kuok (Singapore) Ltd is its largest shareholder with a 60.3% stake.
The stake will be sold to its shareholders via a renounceable restricted offer for sale (ROS) exercise involving up to 386.39 million POSH shares, said a report.
On a pro-rate basis, 386 offer shares are available for sale for every 1,000 existing Maybulk shares held, according to its filing with the stock exchange. At an indicative price of 88 sen a share, the disposal will raise RM340mil for Maybulk.
“Given the weakness in the dry bulk and offshore services sectors in recent years, there has been a strain on the cash flow of the Maybulk group, and consequently, the group is required to raise funds to strengthen its future operations,” it said in a filing with the stock exchange.
Maybulk currently owns the stake in POSH through its wholly owned subsidiary Lightwell Shipping Inc.
